Two talks at Boost Bristol networking event how to build value in your business, business planning to exit or sell. June 2017

1. Welcome to
Boost #13
Building value in your
business
with
The Leadership School &
The Exit Planning Company
Feel free to tweet…
@boostbristol
@businessBPUK
@spaceforthinking
#boostbristol

2. Sharon Collier

3. Simon Norton
The Exit Planning
Company

4. Build to Sell - 3 Methods
To Create Value in Your
Business Today!

5. Agenda
 How buyers think and behave
 Common reasons for an exit
 3 methods for increasing value
 How to start planning for an exit
 The exit options
 Summary

6. Exit or Not To Exit……
Relevant if you are planning an
exit over the next few years or if
you want to have a more
profitable company now!

7. Lets Start With a Quote (or two)
“Ready or not, one day it will come to an end and all
business owners will need to exit their business. ”
Geoff Green
“Business owners can spend more time planning a family
holiday than planning the future exit from their business.”
Richard E. Jackim

8. How do Buyers Think?
Value Risk

9. The Rush to Sell……

10. Why Businesses Don't Sell
1.Not ready for sale- go to market too early
2.Risks identified by buyer – single point of failures
3.Contracts –out of date or non existent
4.Intellectual property
5.Poor financial accounting
6.Owner dependant
The cost of a failed sale £50k -£100k in fees

11. Exiting a Business is Hard
“Hard” - financial, legal, and due diligence
“Soft” –emotional and life after the sale.

12. Most Common Reasons
For An Exit
Health Family Unsolicited
approach

13. 3 Methods to
Create Value
Now!

14. 1.Reduce Reliance On
Business Owner
Buyer Risks
Will the customers stay?
Will the staff be loyal?
Who understands systems/processes?
Seller Risks
Reduction in offer price
Long earnout option
Unrealistic targets
Solutions
Build a management team
Key staff ‘locked in’
Develping staff
Robust Processes

15. 2.Sales Engine That
Delivers Recurring Revenue

16. 3.Customer Satisfaction

17. How To Start Planning
For An Exit.

18. How Long to Plan an Exit?
It takes longer than you think, up to 6
years!

19. Buyers Due Diligence – be aware!

20. THE EXIT
OPTIONS

21. The Types Of Exit
1. Family Transfer
2. Management Buy Out
3. Management Buy in
4. Sell to Employees
5. Sell to a third party
6. Go Public
7. Liquidate the business

22. How much is my business worth?

23. The Best Exit (for you…..)
1. Best time to sell – economic – Industry – you
2.Advisory team in place – legal, tax, financial, exit, HR
3. Create competitive sales process –multiple buyers

24. How do I start the process?
Identifies areas to create
additional value

25. Recommended Reading

26. Summary
It all starts with a business valuation….
1. Reduce dependence on business owner
2. Sales engine that delivers consistent recurring revenue
3. Customer satisfaction - NPS
Achieve the best exit for YOU! or have a more profitable business
Think like a buyer, Create Value NOW and
Build to Sell!

27. Questions?
Simon Norton
The Exit Planning Company
07736 596701
Simon.Norton@exit-planning.co.uk
Business valuations, exit strategies and selling businesses.

28. Before you go…
 Our next event is on Tuesday 19th
September
“Bringing Sales and Marketing together”
 Please fill in the feedback forms
 Monthly Boost newsletter – send us your blogs!
 Don’t forget to keep in touch!
Twitter - @boostbristol
LinkedIn – BoostBristol